U.S. Action in September Saved 1,000 Credit Unions

By

Alan Zibel

Updated Dec. 9, 2010 1:13 p.m. ET

U.S. government rescues prevented the failure of about 1,000 consumer credit unions, which could have been pulled under due to the failure of larger institutions that hold their investments, a regulator said Thursday.

In late September, the federal government moved to stabilize a crucial part of the credit-union sector, which was battered by losses on mortgage investments. The government is issuing up to $35 billion in...